Comparing Accuray (NASDAQ:ARAY) and Treace Medical Concepts (NASDAQ:TMCI)

Accuray (NASDAQ:ARAYGet Rating) and Treace Medical Concepts (NASDAQ:TMCIGet Rating) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Accuray and Treace Medical Concepts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Accuray -1.24% -10.61% -1.13%
Treace Medical Concepts -34.46% -39.92% -23.87%

Volatility & Risk

Accuray has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Treace Medical Concepts has a beta of -0.15, indicating that its share price is 115% less volatile than the S&P 500.

Valuation & Earnings

This table compares Accuray and Treace Medical Concepts’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Accuray $429.91 million 0.48 -$5.35 million ($0.06) -36.50
Treace Medical Concepts $94.42 million 13.35 -$20.55 million ($0.71) -32.06

Accuray has higher revenue and earnings than Treace Medical Concepts. Accuray is trading at a lower price-to-earnings ratio than Treace Medical Concepts, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

66.1% of Accuray shares are owned by institutional investors. Comparatively, 41.0% of Treace Medical Concepts shares are owned by institutional investors. 4.0% of Accuray shares are owned by company insiders. Comparatively, 41.9% of Treace Medical Concepts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Accuray and Treace Medical Concepts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accuray 0 0 3 0 3.00
Treace Medical Concepts 0 0 4 0 3.00

Accuray presently has a consensus price target of $7.33, suggesting a potential upside of 234.86%. Treace Medical Concepts has a consensus price target of $24.75, suggesting a potential upside of 8.74%. Given Accuray’s higher probable upside, analysts plainly believe Accuray is more favorable than Treace Medical Concepts.

Summary

Accuray beats Treace Medical Concepts on 9 of the 13 factors compared between the two stocks.

About Accuray

(Get Rating)

Accuray Incorporated designs, develops, manufactures, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the Americas, Europe, the Middle East, India, Africa, Japan, China, and rest of the Asia Pacific region. It offers the CyberKnife System, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of various types of cancer and tumors in the body, such as prostate, lung, brain, spine, liver, pancreas, and kidney. The company also provides the TomoTherapy System, including the Radixact System, which consists of an integrated radiation therapy system designed for the treatment of a range of cancer types. In addition, it offers post-contract customer support, installation, training, and other professional services. The company primarily markets its products directly to customers, including hospitals and stand-alone treatment facilities through its sales organization, as well as to customers through sales agents and group purchasing organizations in the United States; and to customers directly and through distributors and sales agents internationally. Accuray Incorporated was incorporated in 1990 and is headquartered in Sunnyvale, California.

About Treace Medical Concepts

(Get Rating)

Treace Medical Concepts, Inc., an orthopedic medical device company, engages in the design, manufacture, and marketing of medical devices for foot and ankle surgeons in the United States. It offers Lapiplasty procedure that allows podiatric surgeons to treat all three dimensions of the bunion, providing patients with a cosmetic and medical improvement. The company also provides Lapiplasty Mini-Incision precision system. In addition, it offers products to address ancillary surgical procedures, including akin osteotomies, weil osteotomies, intercuneiform stabilization, lesser tarsometatarsal joint fusions, and autograft bone harvesting, as well as for MTP fusion. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra Beach, Florida.

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